Ricardian trade theory

Kiminori Matsuyama

Ricardian trade theory

Economics

Research output: Chapter in Book/Report/Conference proceeding › Entry for encyclopedia/dictionary

Abstract

Ricardian trade theory takes cross-country technology differences as the basis of trade. By abstracting from the roles of factor endowment and factor intensity differences, which are the primary concerns of factor proportions theory, Ricardian trade theory offers a simple and yet powerful framework within which to examine the effects of country sizes, of technology changes and transfers, and of income distributions. Moreover, its simple production structure makes it relatively easy to allow for many goods and many countries, and hence capable of generating valuable insights which are lost in the standard two-country, two-sector model of international trade.

Original language	English (US)
Title of host publication	The New Palgrave Dictionary of Economics
Editors	Steven Drulauf, Lawrence E Blume
Publisher	Palgrave-Macmillan
Edition	2
ISBN (Print)	978-0-333-78676-5
State	Published - 2008

Cite this

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abstract = "Ricardian trade theory takes cross-country technology differences as the basis of trade. By abstracting from the roles of factor endowment and factor intensity differences, which are the primary concerns of factor proportions theory, Ricardian trade theory offers a simple and yet powerful framework within which to examine the effects of country sizes, of technology changes and transfers, and of income distributions. Moreover, its simple production structure makes it relatively easy to allow for many goods and many countries, and hence capable of generating valuable insights which are lost in the standard two-country, two-sector model of international trade.",

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AB - Ricardian trade theory takes cross-country technology differences as the basis of trade. By abstracting from the roles of factor endowment and factor intensity differences, which are the primary concerns of factor proportions theory, Ricardian trade theory offers a simple and yet powerful framework within which to examine the effects of country sizes, of technology changes and transfers, and of income distributions. Moreover, its simple production structure makes it relatively easy to allow for many goods and many countries, and hence capable of generating valuable insights which are lost in the standard two-country, two-sector model of international trade.

M3 - Entry for encyclopedia/dictionary

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BT - The New Palgrave Dictionary of Economics

A2 - Drulauf, Steven

A2 - Blume, Lawrence E

PB - Palgrave-Macmillan

ER -

Ricardian trade theory

Abstract

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